Latest news with #digitalnatives
Harvard Business Review
10-07-2025
- Business
- Harvard Business Review
How Pop Mart Won Young Customers in a Fragmented Attention Economy
In the Internet era, content is not only abundant but increasingly fragmented. Customers' attention is also becoming fragmented due to the short videos and other media they consume every day. As that happens, the traditional logic of consumer product innovation and marketing with sophisticated, big-budget development is becoming less efficient. Instead, to win customers who grow up in today's attention economy, leaders need agile strategies tailored to these individuals' emotional and identity needs. My research on company cases and behavior patterns of digital natives indicates that young companies like Pop Mart, a Chinese toymaker that's reached global success by selling character-based premium products, offer valuable insights. During 2024, Pop Mart's stock price has more than quadrupled year-over-year. Understanding Pop Mart's story—and the individuals it serve—can help consumer goods companies build up brand recognition among the digital-native generation and achieve financial success. The lessons in this article also apply to business leaders running B2B operations, who must learn to cater their products to a group of digitally native decision-makers. This generation isn't just individual consumers. They are increasingly influencing an organization's purchasing decisions. Appealing to Young Customers Pop Mart is best known for its artist-designed collectible figurines and 'blind box' marketing strategy, in which buyers don't know which figure they've purchased from a themed set until opening the package, which can compel them to buy more. Pop Mart first created a sensation in 2017 by organizing comic toy exhibitions in China. It then began collaborating with luxury brands, creating a series of hit products, and opening hundreds of stores around the world. In 2024, Labubu, one of Pop Mart's signature dolls with unique artistic design , wielded its charm across millions of fans in Southeast Asian countries, a market many multinational companies are actively competing for. Pop Mart's business outside mainland China now accounts for nearly 40% of its $1.8 billion total revenue. What propelled Pop Mart's success lies in its agile strategies targeting millenials and Gen Z customers. Leverage Real-time, Data-based Customer Insights In an era of fragmented attention, companies need to upgrade their ability to rapidly identify—and promote—the right innovations, based on real-time consumer feedback. Coupled with swift adjustment in supply chain decisions and marketing resources, such insights help transform otherwise fleeting trends among young customers into tangible profits. This sort of resource matching capability is akin to how TikTok's algorithm identifies emerging internet sensations. When the algorithm detects that a type of short videos is gaining traction, e.g., garnering high engagement through shares, likes, and completion rates, the algorithm automatically channels more traffic to the content, amplifying its visibility across the platform. Similarly, when developing a new product series, Pop Mart collects feedback from the markets in real-time and iterates the design accordingly. Once it identifies characters that can foster strong connections with users, the company will swiftly adjust its product development resources so it catches trendy topics among young customers. Such a doing-to-learn approach allows companies like Pop Mart and TikTok to maximize their chance of success in pushing forward the right innovations in a time when the audience's attention is highly fragmented. One example of this 'algorithmic' operation—where smart use of consumer feedback data, not just creativity, drives the lifecycle of a new innovation—is the recent breakout success of Labubu. Originally a niche figure from The Monsters series by artist Kasing Lung, Labubu rose to prominence through Pop Mart's agile and data-driven approach. When the company's monitoring caught global celebrities like Lisa of BlackPink and Rihanna organically promoting Labubu on social media and generating huge views, Pop Mart rapidly relocated resources to amplify the momentum. Recognizing higher user engagement with a soft, tactile type of dolls in plush form, the company created the 'soft vinyl plush' category by combining expressive rubber faces with plush bodies. This further enhanced shareability on social media as users posted more physical interactions with Labubu. When expanding globally, Pop Mart leveraged Shopee and TikTok data on consumer feedback to localize offerings for new markets. Data analysis also influenced its marketing decisions for the Western customers, aligning with locally relevant fairytale themes and fashion culture. Through data-driven operations from product innovation to marketing, Pop Mart demonstrated how product concepts—from the mischievous grinning, fanged Labubu to the pouty-lipped, perpetually unimpressed Molly with large emerald eyes—can be transformed into cultural phenomena attractive for global young consumers. Companies across a wide range of industries, not just those in consumer goods and services, can learn from Pop Mart and TikTok to build more adaptive and data-informed product and brand strategies. By continuously monitoring, testing, scaling, and iterating, firms can dynamically match concepts with shifting market signals, much like how algorithms amplify viral content. This requires having the infrastructure to track real-time consumer feedback and the organizational agility to swiftly adjust product development, marketing, and supply chain decisions. While today's geopolitical uncertainties often complicate supply chain planning, these uncertainties also present an opportunity for firms to build more capabilities allowing for rapid responses. For example, Pop Mart's supply chain optimization to develop precise and operationally lean infrastructures enabled a 30-fold increase in production within a year. Companies that adapt and develop sufficiently granular, responsive resource allocation systems—across a product's life cycle—will be rewarded with cost-effective growths, especially with the digitally native customers. Tap into Young Customers' Individuality and Community Needs For brands, winning the digital-native customers also means adopting marketing strategies that engage with their deep psychological needs and seizing on opportunities to create cultural phenomena associated with the brands and products. Take the blind box marketing strategy. Although Pop Mart is known for the surprising and even addictive nature of its mystery figures sold in blind boxes, the company is not the first to use the strategy. The concept originated in Japan, where consumers purchase random, palm-sized toys sealed inside plastic capsules from a special vending machine without knowing the exact contents in advance. This approach encourages the collection of various editions, including limited or hidden ones. What's special is that Pop Mart managed to turn users' collecting behaviors into a phenomenon: not only driving repeat purchases from existing users, but also attracting loads of new customers as loyal fans post their highly emotional unboxing reactions on social media. Underneath the use of limited and hidden editions are strategies to attract and satisfy the emotional needs of young customers. Moreover, these strategies greatly enhance the user's sense of self identity. When someone secures a coveted, limited-edition item, they feel cool and unique. Owning a rare Labubu doll that no one else has? That is a bold statement of identity and individuality. For other companies, they should likewise asses how their products and brands connect with young audiences on a deeper identity level, and explore innovative ways to enhance these touchpoints and foster more meaningful consumer relationships. The tangible benefits of such deep connection are evident across many consumer goods industries. It's seen in those IP-related merchandises purchased by K-pop group fans, and in Starbucks' seasonal themed products (such as its iconic holiday cups) that go beyond utility to evoke emotional resonance and deepen brand affinity. Business leaders can also learn from Pop Mart's focus on offline experiences to engage young users and build a cultural phenomenon around their brands. Different from its Japanese competitors selling blind box figurines, which are marketed via Internet sales and a distributor model, Pop Mart has built its own flagship stores with vibrant color and digital media to create a unique brand experience and encourage meet-ups. This is important for young customers who crave for human connections after the pandemic—some fans would even travel across continents to visit these iconic stores and engage with fellow enthusiasts. Having such spaces encourages customers to spend more time in the stores, building a deeper sense of brand loyalty and community. And such loyalty can extend to online platforms as well. In the case of Pop Mart, online communities for young customers from Instagram to Reddit further amplified the cultural phenomenon sparked by Pop Mart's art toys, building up a positive feedback loop between online and offline sales. In a similar vein, Nike's seamless integration of physical stores, mobile apps, and online campaigns illustrates how a unified ecosystem can deliver for consumers—and the brand. Companies aiming to foster robust engagement with Gen Z customers can draw important lessons from Pop Mart's success beyond the blind box tactics. At the heart of its appeal are strategies that spark user-generated content and help young consumers express their individuality and social identity. Equally critical is the creation of immersive offline experiences, offering customers dedicated spaces to connect, explore, and share, while digital communities amplify this sense of belonging and self-expression. By skillfully tapping into the young customers' psychological needs, blending experiential touchpoints and community connections, companies are more likely to deepen young customers' ties to the brand and elevate their products into lifestyle symbols. Cultivate Belonging and Loyalty Among Digital Natives Like LEGO, Pop Mart has gradually developed its own unique brand language to further enhance users' sense of community and belonging. This is particularly important for consumer brands trying to appeal to the digital generation, as these young customers can often feel isolated despite constant online activity. In the case of Pop Mart, the company has intentionally cultivated a series of buzzwords that's emerged within the brand's fandom space over time. Phrases like 端盒 (buy a whole set of blind boxes to get one's target doll) and 拆盒 (split a full box) have become an integral part of the community culture. Beyond blind boxes, other particular terms have also been augmented through user generated content across social media platforms, such as 娃友 (friends of doll), while enhancing Pop Mart's relationship with users. Over the decades, successful brands—from Apple to Hello Kitty—often intentionally form a set of brand language choices in their interactions with users, strengthening their perceived identity and community engagement. Pop Mart's exclusive language is not so different. Language helps facilitate the deep rooting of a cultural phenomenon and drives a brand's continuous growth. While this lesson may not be as broadly applicable as the previous two, it still offers meaningful implications for firms aiming to communicate more effectively with digital-native customers. Companies should actively monitor online conversations related to their brands among young audiences and participate in the emerging of unique expressions and trending word choices. By supporting the shared vocabulary and linguistic style within one's brand community, companies can foster a stronger connection with the young generation. … One additional point: Many of these developments are taking place within the realm of social media platforms, such as RedNote in China and TikTok in Southeast Asia. For companies seeking to engage with young customers, understanding these platforms and effectively leveraging their traffic and insights is essential. However, generational gaps often pose challenges in recognizing and capitalizing on emerging trends. To bridge this gap, companies need to ensure they have enough younger employees and creative talent to complement their typically older management teams. Just like how Tecent's Pony Ma puts it: 'In business, maybe you didn't do anything wrong—the only mistake was being too old.'
CNA
07-07-2025
- Entertainment
- CNA
Forget dusty cellars and sommelier jargon. Gen Z drinks with intention, not intimidation
Far from relying on long held tropes about wine drinking, today's youngest drinkers of legal drinking age are rewriting the rules of what it means to enjoy a good tipple. For this curious generation, savouring an alcoholic beverage is often less about status and more about storytelling. Whether it is a biodynamic sake from Japan, a juicy red from an under-the-radar wine region like Greece or Georgia, or a lesser known Italian white varietal, Gen Z wants bottles that reflect their identity, not their parents' palate. No surprises that social media aesthetics matter to this generation. For many of them, a bottle is not just judged by what is in it, but also by whether it is post-worthy. This is why eye-catching design, compelling backstories and a dose of cool factor can go a long way with digital natives who spend up to 42 per cent of their waking hours in front of screen. Consequently, even though wine brands still lag behind the slick marketing of big beer and spirits players, the rise of AI creative tools is already helping to level the playing field. With more accessible ways to craft engaging content, winemakers may soon have a better shot at capturing Gen Z's attention — and earning a spot on their feeds as well as their tables. As it is, while only about half of Gen Z (those born between 1997 and 2012) is currently of legal drinking age, their influence was impossible to miss at Vinexpo Asia 2025, a major wine and spirits trade show held in Singapore in May. The event, with over 1,000 exhibitors from 30 countries, highlighted a new wave of drinkers who value authenticity, sustainability and connection over tradition for tradition's sake. From masterclass tastings to panel discussions, producers and industry insiders alike acknowledged the rise of the next generation of drinkers who will shape what's in and what's out in the years to come. We take a closer look at what is actually filling Gen Z's glasses these days. THEY ARE CONSUMING LESS BOOZE First up, some sobering news for the industry: Alcohol consumption is on the decline globally and Gen Z is leading the charge. According to a March 2025 YouGov survey presented at a panel discussion at Vinexpo Asia, this generation is drinking significantly less than their predecessors in a shift driven by economic caution as much as lifestyle choice. In challenging economic times, young consumers with limited disposable income may not feel inclined to spend on non-essentials such as wines and spirits or entertainment, said Rob Temple, managing director of Sinowine and a Vinexpo partner, who took part in a panel discussion as part of The Vinexpo Academy's programme. Additionally, drinking less could also be a deliberate health and wellness choice, leading to more sober-curious consumers and dry nights. Even when they do dine out, Gen Z's favourite F&B haunts may not offer a full alcohol menu, or they may lean toward more affordable options. This could be why beer remains the top choice, with 37 per cent of Gen Z drinkers naming it their go-to, according to the YouGov survey. Philippe Chan, general manager of YouGov Hong Kong and China also noted the rising popularity of sparkling wines like Prosecco, which deliver a sense of premium indulgence without the champagne price tag. 'That is a big draw for younger drinkers who are looking for something celebratory but accessible,' he said. Also, there has been a fundamental shift in how this generation spends its leisure time by putting in more hours online and socialising virtually than going out in the traditional sense, said Temple. Accelerated by the pandemic, this change means fewer spontaneous bar nights, further contributing to the drop in casual alcohol consumption. But that does not mean they are teetotallers. Rather, they are being more intentional about what, when and why they drink. 'Gen Z is drinking less, but they are drinking better,' said Mason Ng, group wine director at Park90. 'Rather than multiple bottles, they might go for one really nice glass or a rare producer they have read about.' Wine communicator Jessica Anne Tan, who curated the masterclasses and panel discussions at Vinexpo Asia 2025 for the Italy pavilion, observed that younger drinkers in Singapore tend to value the communal experience of clinking glasses. 'Price is not a primary concern for them, it is about enjoying the moment together,' she said. For instance, many are happy to split a bottle among a group of 10 friends for the shared experience of enjoying a drink together. This shift is prompting a serious reimagination of traditional wine bar menus and pricing. 'It means rethinking our by-the-glass lists and finally moving away from outdated three-times markups. The future is about access, quality and experience, not just volume,' said Ng. STORYTELLING OVER STATUS For a generation that values authenticity and resonance, what is in the glass does matter, but why it is in the glass matters even more. 'Grape varieties and terroir are interesting, but this is not the starting point,' said Mason Ng. 'They are definitely more focused on whether the wine speaks to something bigger than just what is in the glass. What really matters is why the wine exists — the people who made it, the style of wine, and the story behind the bottle.' Bonus points if a bottle can spark wanderlust, with Gen Z gravitating towards tipple from places they have visited or dream of exploring. With Japan currently one of the most popular travel destinations, the 'Japan effect' is especially evident in the growing interest in sake. Ironically, while sake carries an 'old-fashioned' or traditional image among many young Japanese, it is enjoying a renaissance in export markets where Gen Z sees it through a different lens as cool, craft-driven and culturally rich. Besides sake, Ng has also noticed that young drinkers are curious about wines from under-the-radar Hokkaido, which is a popular winter sports destination. Italian wines too have benefitted from the surge in travel, with red and sparkling wines, growing in popularity. 'There is an emotional connection to Italy's rich culture, art, and culinary heritage, which many young people already admire. Italian wines bring that lifestyle to life in a bottle as they tell a story of place, tradition, and craftsmanship that younger audiences value,' said Matteo Zoppas, president of the Italian Trade Agency. ADVENTUROUS PALATES Forget Grand Cru snobbery or collecting labels for clout. Instead, Gen Z tend to prefer seeking out drinks that are different from what their parents like. For instance, they show a stronger preference for white and rose wines compared to reds, a more traditional choice among older drinkers, said Chan of YouGov. But it is the drinks with offbeat intrigue that really captures the younger generation's imagination, such as a pet-nat from Australia or a red from Serbia, observed Temple. This adventurous streak is backed by data. According to the YouGov survey, 63 per cent of Singaporean drinkers expressed interest in biodynamic wines, 55 per cent in organic and 48 per cent in sustainable labels, suggesting that provenance, ethics and process matter just as much as taste. When it comes to taste profiles, younger drinkers tend to prefer more 'approachable' wines that are slightly sweeter and lower in acidity and tannins. For instance, Tan has noticed a preference for Amarone and Primitivo wines from Italy, which offer a riper, jammy character which can be more appealing to younger palates.
Zawya
13-06-2025
- Business
- Zawya
African Gen Z on the rise in the global influence economy
Across the African continent compelling economic and demographic forces are converging to position Gen Z, along with Gen Alpha, as the major force to shape the future of work, culture and consumerism. Africa is by far the most youthful region of the world. According to the International Labour Organisation, around 375 million young Africans will have entered the job market by 2030. At an estimated 42% of the world's youth population, their aspirations and concerns for the world, as well as their life preferences and choices will have a global impact. This demographic power isn't just about numbers, however. These young Africans are also digital natives and their prowess at navigating digital landscapes is giving them the edge. According to Emma Odendaal, head of Influence for dentsu EMEA, the digital transformation of our world is setting the stage for African youth to rise as drivers, players and leaders in the future global economy. She notes: 'Sub-Saharan Africa has one of the fastest-growing rates of mobile phone penetration globally with more than 495 million mobile subscribers in the region. As connectivity spreads wide and deep, and device affordability improves, the digital natives of Africa are not just participating online as consumers but as dynamic content creators and shapers of the future of the world.' As the world's first true digital native generation, Gen Z are proving to be far more open to influencer marketing than their millennial counterparts. Odendaal explains: 'While older generations typically use social media to stay connected to friends, Gen Z has grown up in a world where social media platforms have evolved to deliver a far greater volume and variety of content. They use social media to follow their favourite artists, celebrities and influencers, and to find community when it comes to the entertainment, passions and brands that are important to them. This means that they are an exceptionally marketing-aware generation, adept at scanning and scrolling through reams of social media posts and homing in on what is relevant to them.' In a mobile-first world, brands in Africa are increasingly redirecting traditional advertising spend into creator-led digital channels that meet young consumers exactly where they are – in their chosen digital communities. According to a Google/IFC e-Conomy Africa report, Africa's internet economy may contribute $180bn to the continent's GDP by 2025 and has the potential to grow to $712bn by 2050. Meanwhile, Statista anticipates a 10.1% annual growth in influencer ad spending over the next five years, and forecasts that in 2025, it will exceed $30m in South Africa. This momentum toward trust-based digital creator ecosystems is real and happening now. In South Africa, multinational giants such as Beiersdorf, with leading brands such as Nivea, Nivea Men and Eucerin, are actively amplifying their influencer marketing strategies. Sne Njapha, precision influence and PR manager at Beiersdorf says: 'Influencer marketing is more than just about a means to reach consumers. It's about ensuring we meet our consumers where they are, at their point of need. Today, it's a key strategic pillar of how we do business. We have increased our investment in the acquisition of new models and tools, the upskilling of our employees and key partners and diversifying our pool of creators. Our focus is also on building long-term influencer relationships to maintain credibility and authenticity so that we create and maintain meaningful connections with our consumers.' Beiersdorf's head of integrated media, Teniel Nelson adds: 'Leading the influencer acceleration with my team puts us at the forefront of this exciting influencer movement. Influencer marketing in South Africa is growing fast with over 60% of brands increasing their investments in 2025.' With the boom of the influencer economy comes the need for accountability and standards. The South African Content Creator Charter, launched in 2024, is a foundational effort to professionalise the influencer industry. Developed by the Interactive Advertising Bureau South Africa (IAB SA) in collaboration with industry stakeholders, the charter provides guidelines and ethical practices for both marketers and creators. This is an issue that is top of mind at Dentsu, and Odendaal says: 'Dentsu was a pioneering signatory to the South African Content Creator Charter because we see it as a landmark in defining creators not just as freelancers with a side hustle, but as professionals in a growing digital economy. We believe that regulation helps ensure Africa's influencer industry evolves with transparency and trust, safeguarding the integrity of brands and promoting sustainable careers for the continent's content entrepreneurs.' All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
13-06-2025
- Business
- Zawya
Gen Zs are shaping the future of retail
Youth Day invites us to pause and consider the role young people are already playing in shaping South Africa's economy – including the evolving retail landscape. South Africa's Gen Z – those aged roughly 15 to 27 – are a generation shaped by disruption. Born into democracy but coming of age in economic uncertainty, digital acceleration and social reinvention, they are navigating adulthood on their own terms. Slowly but surely, they're leaving their mark on retail, too. While fewer than half of Gen Zs currently identify as a 'household' grocery shopper, their influence is already being felt – from what is being bought to where and how it's being bought. Their behaviour offers a glimpse into the retail landscape of tomorrow, shaped by digital influence, values-driven choices and evolving expectations. Under-resourced but upwardly mobile Gen Z is the least urbanised and most under-resourced generation in the shopper landscape today. Many are young singles or single parents, and over half live in households earning under R5,000 a month. While this limits their purchasing power, it doesn't limit their aspirations or their resourcefulness. Despite being less likely than older generations to receive social grants, a third of Gen Z still do. They are navigating tough conditions with ambition, agility, and a mobile phone in hand. Gen Z isn't a monolith. Higher-income Gen Zs are more educated, more urban, more digitally immersed, and more brand-aware – shopping online, engaging with social media influencers, and prioritising values like quality and sustainability. Lower-income Gen Zs, meanwhile, are just as aspirational but face more structural barriers to choice and access. Retailers and brands need to plan for both ends of this spectrum – thanks to their education and comfort with technology, Gen Z represents significant purchasing potential. From TikTok to till points: The digital path to purchase This is a generation raised online. Nearly three-quarters engage with the internet daily – far more than older generations – and their path to purchase reflects this. They're not relying on radio or newspaper specials. Instead, they're scrolling retailer pages, checking websites and price-comparison tools, and tuning into creators on TikTok for grocery tips and product hauls. They're also more likely to trust retailers – a silver lining for brands that get it right. While most of their grocery shopping still happens in-store, online retail is part of the picture, particularly for higher-income Gen Zs. Digital engagement increases with household income, and so does online shopping: 19% of Gen Zs in the highest income bracket reported shopping online in the past month, compared to just 5% in the lowest bracket. Not just bargain hunters While price matters, Gen Z is willing to pay more for the things they value. Compared to the average South African shopper, Gen Z is more likely to pay a premium for freshness, quality, health, sustainability, and even a brand they love. That said, loyalty cards don't win them over as easily. They're the generation least likely to engage with rewards programmes – but the most likely to prioritise great service. For Gen Z, value goes beyond rands and cents. Youth Day reflection As we reflect on the legacy of 16 June, it's clear that today's youth are still finding new ways to shape their futures – and the nation's – through the roles they play in households, communities and the economy. Gen Z may be the youngest generation in the grocery aisle, but they are shaping the retail landscape of tomorrow. For businesses across the FMCG sector, understanding how and where they shop and why is essential to relevant channel strategies, customer plans and shopper engagement that keep pace with change.
Hospitality Net
12-06-2025
- Business
- Hospitality Net
How Values and Tech are Reshaping Travel in 2025 and Beyond
Gen Z and Millennials spearhead a significant shift in the travel industry. They demonstrate how values and tech are reshaping travel in 2025 and beyond. Understanding the evolving travel trends of Gen Z, which are driving this change, is therefore crucial for the industry. These digital natives seek identity-forming, authentic experiences. Traditional holidays are not enough. Instead, technology, particularly social media, fuels their travel intent. Central to this evolution are Gen Z's unique values. A focus on purpose and spontaneity, for instance, consistently drives their decisions. Their inherent digital fluency, combined with these essential factors, is poised to transform global travel in remarkable ways. This upcoming shift will likely shape 2025 and beyond, setting a new course for the years to come. Takeaways Values First: Gen Z seeks authentic experiences, growth, sustainability, and connection over material travel perks. Tech's Influence: Social media (especially TikTok) inspires Gen Z, while AI personalizes their travel experiences. Key Gen Z Trends: Set jetting, gig tripping, short breaks, food travel, and off-grid exploration are rising. Smart Spending: Gen Z travellers are budget-conscious, prioritizing funds for unique activities over lavish stays. Essential Adaptation: Industry must balance tech with human touch, maintain trust, and embrace responsible practices. The ascent of a new traveller cohort The travel industry is witnessing a seismic shift. Gen Z, those aged between 18 and 27 in 2025, and Millennials, aged 28 to 43, are now the most influential travel demographics globally. Their approach to travel diverges sharply from traditional tourism models. They are not passive tourists. Instead, they are active participants in their journeys. For them, travel is an extension of their identity. Consequently, it is deeply intertwined with self-discovery and global connection. Technology is not just a tool for this cohort; it is an integral part of their travel DNA. Social media, in particular, acts as a primary catalyst, shaping desires and decisions. This dynamic demands a fresh perspective from hospitality providers. Adapting to their unique values and tech-savviness is paramount. Experiences over possessions For Gen Z, the value of travel lies in experiences, not souvenirs. Travel is far more than a mere break from routine. It is an essential component of their personal growth. Furthermore, it helps them connect with the world and understand their place in it. They actively prioritize experiences over material goods. This quest for meaning translates into a desire for travel that is both enriching and transformative. Hotels, therefore, need to focus on curating unique and memorable experiences. These experiences should resonate with Gen Z's search for personal development and social connection. Authenticity and novelty Predictability is the enemy of the Gen Z traveller. They actively seek spontaneity and adventure. This generation yearns for personal growth through their journeys. As a result, they are drawn to unique, authentic, and culturally rich experiences. Lesser-known destinations often hold more appeal than crowded tourist hotspots. Indeed, a significant 68% of Gen Z travellers prioritize destinations where they can 'discover something new.' This preference often leads them to explore 'dupe destinations' or off-beat locations. They are not just visiting; they are exploring and engaging. Thus, hotels and travel companies should highlight the unique cultural fabric of their locations. Purposeful and conscious travel Today's younger travellers are increasingly conscious of their impact. They are evolving from passive consumers into active participants in sustainable tourism. This includes engaging in conservation projects. It might also involve participating in community programs or seeking genuine cultural exchanges. Consequently, the younger population will likely avoid destinations perceived as harmful to the climate. They also shun places lacking a regenerative or responsible tourism component. Travel in 2025 is becoming more deliberate and introspective. It has a strong focus on safety, sustainability, and profound experiences. Therefore, demonstrating a genuine commitment to sustainability is vital for attracting this demographic. Affordability and savvy budgeting strategies Affordability is a key factor for Gen Z travellers, who prioritize exploration despite rising travel costs. They often make sacrifices in other areas to fund their adventures and practice responsible consumption. Many pool resources with friends, utilize group discounts, and choose shared accommodations to stretch their budgets. A significant 72% of Gen Z and Millennial travellers prefer affordable hotels, allowing them to spend more on experiences. Hotels that provide value without sacrificing quality will succeed. The desire for connection and community 'Tribe Travel' Paradoxically, despite being hyper-connected online, Gen Z and Millennials report rising levels of loneliness. This fuels a fundamental human desire for genuine communion and community during their travels. 'Tribe Travel' is a significant motivating factor for 2025. This trend emphasizes forming strong bonds and creating lasting memories. They travel with family and loved ones. Consequently, accommodations and experiences that facilitate group interaction and shared moments will resonate deeply. This could include communal spaces, group-friendly activities, and tailored family packages. The new travel currency: Gen Z and Millennials prioritize creating and sharing memorable experiences, from scenic road trips to unique dining, all fueled by social media. The new search engine and inspiration hub The way Gen Z discovers and plans travel has been revolutionized by social media. Platforms like TikTok are no longer just for entertainment. TikTok's dominance: TikTok has emerged as a primary tool for product discovery and travel inspiration. An estimated 40% of Gen Z consumers prefer TikTok over established search engines, such as Google. They use it for finding hotels, tours, or travel hacks. Astonishingly, 72% of Gen Z consider 'Googling' to be synonymous with searching on TikTok. TikTok has emerged as a primary tool for product discovery and travel inspiration. An estimated 40% of Gen Z consumers prefer TikTok over established search engines, such as Google. They use it for finding hotels, tours, or travel hacks. Astonishingly, 72% of Gen Z consider 'Googling' to be synonymous with searching on TikTok. Authenticity and real-time glimpses: Unlike the often carefully curated feeds on Instagram, TikTok offers unfiltered, real-time glimpses into destinations. This content frequently comes from locals or fellow travellers. This raw authenticity strongly appeals to Gen Z's desire for genuine experiences. Unlike the often carefully curated feeds on Instagram, TikTok offers unfiltered, real-time glimpses into destinations. This content frequently comes from locals or fellow travellers. This raw authenticity strongly appeals to Gen Z's desire for genuine experiences. Influencer marketing and social shopping: Social media platforms are now integral to travel inspiration. About 17% of travellers cite TikTok as their primary source of inspiration. Instagram influences 27% of people when choosing destinations. Furthermore, half of all consumers have felt compelled to book a trip they saw on social media. Travel brands are adapting rapidly. For example, Expedia's 'Travel Shops' allow direct booking of creator-curated trips. Social media platforms are now integral to travel inspiration. About 17% of travellers cite TikTok as their primary source of inspiration. Instagram influences 27% of people when choosing destinations. Furthermore, half of all consumers have felt compelled to book a trip they saw on social media. Travel brands are adapting rapidly. For example, Expedia's 'Travel Shops' allow direct booking of creator-curated trips. Content creation and engagement: Social media platforms shape the culture and preferences of this generation. Brands are increasingly collaborating with micro and nano creators. These creators share authentic, on-the-ground content on platforms like TikTok. This inspires the 'I want to go there' travel intent. Gen Z uses social media significantly more for product research (+22 percentage points compared to the overall average). AI, the planning and experience enhancer Artificial Intelligence is rapidly transforming the travel landscape. It impacts how travellers plan, book, and experience their journeys. Transforming operations and customer experience: AI is set to reshape business operations within the travel industry. It promises to significantly improve the customer experience. Moreover, it can drive sustainable growth. AI is set to reshape business operations within the travel industry. It promises to significantly improve the customer experience. Moreover, it can drive sustainable growth. Personalization and efficiency: AI-powered assistants and personalized itineraries will mark a significant leap into a high-tech travel future in 2025. Leading companies like Marriott Bonvoy and Alaska Airlines are already using AI for sophisticated trip planners. AI voice assistants are also expected to become a core part of travel and dining booking processes. This level of personalization directly appeals to Gen Z's desire for tailored experiences. AI-powered assistants and personalized itineraries will mark a significant leap into a high-tech travel future in 2025. Leading companies like Marriott Bonvoy and Alaska Airlines are already using AI for sophisticated trip planners. AI voice assistants are also expected to become a core part of travel and dining booking processes. This level of personalization directly appeals to Gen Z's desire for tailored experiences. Operational streamlining: Businesses are leveraging AI to dramatically slash product development times. They are also using it to streamline production capabilities and cut operational costs. However, this rapid market entry facilitated by AI also comes with increased business risks that need careful management. Businesses are leveraging AI to dramatically slash product development times. They are also using it to streamline production capabilities and cut operational costs. However, this rapid market entry facilitated by AI also comes with increased business risks that need careful management. Future adaptability: It is crucial for travel companies to ensure they are well-positioned. They must adapt to increasingly smart personal assistant technology. This technology will likely become central to how Gen Z manages their travel. Bridging the digital divide thoughtfully While Gen Z and Millennials are deeply immersed in the digital world, a digital divide still exists. There is a significant opportunity for travel companies to tailor experiences. They can close this gap for older generations. Simultaneously, they can super-serve the younger, tech-savvy early adopters. This means offering intuitive digital tools for Gen Z. It also means providing alternative, more traditional service options for those less comfortable with technology. Maintaining trust in a digital age of scrutiny Online trust is increasingly under scrutiny. This directly affects consumer behaviour towards businesses, including travel providers. Brands must proactively address data privacy concerns. This is especially critical with the increased adoption of AI and personalized services. Transparency in data usage and robust security measures are essential for building and maintaining Gen Z's trust. Adapting continuously to evolving demands and expectations The preferences of Gen Z and Millennials are not static. They demand active, spontaneous, and transformative travel experiences. Therefore, the travel industry must commit to continuous innovation and adaptation. This means staying agile, embracing new technologies thoughtfully, and constantly seeking feedback from these younger cohorts to refine offerings. The dawn of a new travel era Gen Z and Millennials are transforming the travel industry with their demand for authentic and purposeful experiences, driven by technology. To succeed, the travel sector must focus on intentional, responsible, and sustainable travel while leveraging smart, human-centric technology. Understanding Gen Z travel trends is essential for adapting to this dynamic landscape and ensuring long-term growth. About Shiji Group Shiji is a global technology company dedicated to providing innovative solutions for the hospitality industry, ensuring seamless operations for hoteliers day and night. Built on the Shiji Platform—the only truly global hotel technology platform—Shiji's cloud-based solutions include property management system, point-of-sale, guest engagement, distribution, payments, and data intelligence for over 91,000 hotels worldwide, including the largest hotel chains. With more than 5,000 employees across the world, Shiji is a trusted partner for the world's leading hoteliers, delivering technology that works as continuously as the industry itself. That's why the best hotels run on Shiji—day and night. While its primary focus is on hospitality, Shiji also serves select customers in food service, retail, and entertainment in certain regions. For more information, visit View source
